UVXY Stock Analysis: Price, Forecast, and News (2024)

FAQs

UVXY Stock Analysis: Price, Forecast, and News? ›

UVXY Signals & Forecast

Momentum Indicator for UVXY turns negative, indicating new downward trend. UVXY saw its Momentum Indicator move below the 0 level on April 26, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options.

Based on the Rule 16, the options market is currently suggesting that ProShares Ultra VIX will have an average daily up or down price movement of about 5.44% per day over the life of the 2024-05-17 option contract. With ProShares Ultra trading at USD 27.68, that is roughly USD 1.51 .

To put it simply, the existence of contango and the very structure of UVXY demands that it maintain a downward trend to zero forever. For this reason, UVXY should be used as a short-term trading tool only. Remember the leveraged nature of UVXY amplifies the returns based on the VIX futures (by 1.5x).

NEVER use it as part of a buy-and-hold strategy. This is because UVXY's price decreases over time due to a phenomenon called contango. Contango is when the futures price is higher than the spot (current) price. Moreover, funds like UVXY do not hold their futures contracts to expiration.

Over time, because of contango loss and time decay, UVXY persistently and consistently goes down in price. It is because of this UVXY is not designed for long-term traders. In both neutral and bullish markets, UVXY should fall in value. The UVXY ETF is correlated to VIX Futures and NOT the VIX Index.

If UVXY is trading enough below the IV value they start buying large blocks of UVXY—which tends to drive the price up, and if it's trading above they will short UVXY.

As a result of the reverse stock split, each UVXY Share will be converted into the right to receive 0.2 (New) ProShares Ultra VIX Short-Term Futures ETF Shares. The reverse stock split will become effective before the market open on April 11, 2024.

Invesco QQQ stock price stood at $451.75

According to the latest long-term forecast, Invesco QQQ price will hit $500 by the middle of 2025 and then $600 by the end of 2026. Invesco QQQ will rise to $700 within the year of 2028, $800 in 2029, $900 in 2030, $1000 in 2032 and $1100 in 2034.

UVXY Max Pain

The Max Pain for UVXY options expiring on May 10, 2024 (4 days) is $30.50.

Which is better VXX or UVXY? ›

VXX - Performance Comparison. In the year-to-date period, UVXY achieves a -34.41% return, which is significantly lower than VXX's -22.29% return.

As a geared product with daily resets, UVXY is designed as a short-term trading tool and not a long-term investment vehicle.

ProShares Ultra VIX Short-Term Futures ETF's (UVXY) Moving Averages Convergence Divergence (MACD) indicator is -1.99, suggesting ProShares Ultra VIX Short-Term Futures ETF is a Buy. ProShares Ultra VIX Short-Term Futures ETF's (UVXY) 20-Day exponential moving average is 31.08, making it a Sell.

A leveraged ETF uses derivative contracts to magnify the daily gains of an index or benchmark. These funds can offer high returns, but they also come with high risk and expenses. Funds that offer 3x leverage are particularly risky because they require higher leverage to achieve their returns.

This fund has a strong negative correlation to stocks, spikes sharply during crashes, but does decay in price over time. This makes it more suitable as a short-term, tactical holding as opposed to a long-term hedge. UVXY costs an expense ratio of 0.95%.